(a) Eligible costs for land, easements, and rights-of-way include the:

1. (1) Cost (including associated legal, administrative, and engineering costs) of land acquired in a fee simple manner for the construction of wastewater treatment facilities, including a reasonable amount of land required for future reconstruction or expansion of the facilities;

2. (2)

   1. (A) Cost (including associated legal, administrative, and engineering costs) of land acquired in a fee simple manner or by lease for the disposal of treated sewage sludge and other treatment residues.
   2. (B) The cost for the temporary storage of treated sludge and agricultural products grown with treated sludge;

3. (3)

   1. (A) Cost of complying with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4621 et seq., and § 4651 et seq.
   2. (B) This Act covers the acquisition of eligible land, including the cost of contracting with another public agency or qualified private contractor for part or all of the required acquisition and/or relocation services;

4. (4)

   1. (A) Cost associated with the preparation of the wastewater treatment and disposal sites before, during, and, to the extent agreed on in the loan agreement, after building.
   2. (B) These costs include:

(i) The cost of demolition of existing structures on the wastewater facilities site (including rights-of-way) if building cannot be undertaken without such demolition;

1. (ii) The cost (considering such factors as betterment, cost of contracting, and useful life) of removal, relocation, or replacement of utilities, provided the grantee is legally obligated to pay under state or local law; and

   1. (iii) The cost of restoring streets and rights-of-way to their original condition, provided the need for such restoration resulted directly from the construction;
2. (5) Cost of associated legal, administrative, and engineering for the acquisition of sewer easements and right-of-way; and

3. (6)

   1. (A) Cost of obtaining right-of-way and use permits from governmental entities and public or private utility companies for the construction of eligible collector and interceptor lines.
   2. (B) This would include the long distance phone and gas pipeline companies and railroads.
   3. (C) Eligible costs shall not include the cost of refundable bonds or deposits.

(b) Ineligible costs for land and rights-of-way include:

1. (1)

   1. (A) Except as provided in subdivisions (a)(5) and (a)(6) of this section, the costs for the acquisition of sewer easements and rights-of-way for the construction of collector and interceptor sewers as defined by this part.
   2. (B) The requirements of subdivision (b)(1) of this section apply without regard to the eligibility of the construction of the collector or interceptor sewer;
2. (2) The cost of refundable bonds or deposits required concerning the acquisition of right-of-way and use permits as provided in subdivision (a)(6) of this section;
3. (3) Sanitary landfill sites and sludge disposal areas except as provided in subdivision (a)(2) of this section;
4. (4) Any amount paid by the borrower for eligible land over just compensation, based on the appraised value, the borrower's record of negotiation or any condemnation proceeding, as determined by the Arkansas Natural Resources Commission staff; and
5. (5) The cost of acquiring all or part of existing privately owned wastewater facilities.